Dennis Uy eyes selling stake in DITO Telecommunity

DITO CME Holdings Corp., backed by Davao-based businessman Dennis Uy, is planning to slash its stake in DITO Telecommunity to help finance the third telco player's network rollout.

PH's third major telco player

Dennis Uy to cut stake in third telco?

The sell-down of its stake in the new major player is "always a business-driven option available to any investor desiring to raise liquidity," DITO CME said in a disclosure to the Philippine Stock Exchange.

However, it also noted that it is "taken together with other options such as the long-term loan option and/or finding an ideal private placement partner."

DITO Telecommunity has a five-year commitment with the government. By 2024, it vowed to cover 84 percent of the Philippine population.

Earlier, the telco said it already exceeded 70 percent of population coverage. Just this Monday, DITO Telecommunity also said that its subscriber base now surpassed the 12-million mark, four months ahead of its target date.

DITO CME expects DITO Telecommunity to hit profitability by 2026.

Please note that profit picture forecasted by 2026, as well as a positive EBITDA as early as end- 2024 are business projections made by the Dito Telecommunity management and conveyed as part of the business plan briefing updates periodically conveyed by the management, Dito CME said.

Source: PSE